As of December, 28% of option ARMs were delinquent or in foreclosure, according to LPS Applied Analytics, a data firm that analyzes mortgage performance. That compares with 23% in September. An additional 7% involve properties that have already been taken back by the lenders. By comparison, 6% of prime loans have problems. Problems with subprime are still the worst. Just over half of subprime loans were delinquent, in foreclosure, or related to bank-owned properties as of December. The nearly $750 billion of option ARMs issued from 2004 to 2007 compares with roughly $1.9 trillion each of subprime and jumbo mortgages in that period.

Nearly 61% of option ARMs originated in 2007 will eventually default, according to a recent analysis by Goldman Sachs, which assumed a further 10% decline in home prices. That compares with a 63% default rate for subprime loans originated in 2007. Goldman estimates more than half of all option ARMs outstanding will default.

23. It isn't a question of how much it's grown in six months, it's the question of whether

Edited on Tue Jul-21-09 05:22 AM by TheWatcher

It's fundamentally SUSTAINABLE.

This is just another Bubble.

But then again, you probably thought the Artificial runup from 03-08 was real too. And The Media and EVERYONE pumped it RIGHT UP TO THE COLLAPSE, and then told us all that "Nobody Could have forseen...."

How did that work out again?

Obama has NOTHING to do with this.

And they can run it straight up to 10,000 for the rest of the summer.

If there is nothing fundamentally driving it other than artificial machinations and Propaganda, then it's just more Bubble Economics that will eventually BURST again.

And with a devaluing currency, that isn't going to make those Big Gains matter all that much if the Dollar continues to go the wrong direction.

14. The point is that you are only 6 months in, so your comparisons are a bit unfair

Edited on Mon Jul-20-09 03:24 PM by no limit

you can't say that because in the 6 months under Obama the market grew 11% so in 4 years it will grow 90%. Once the 8 years are up you can then make a fair comparission. For all we know the dow could be down to 5,000 next year. remember, during the Bush years there was a point where the dow was going toward the 15,000 mark.

20. Fluctuations in DIJA have nothing whatsoever to do with the real economy

Out here in the real world of rent, utilities, food and health care, the fundamentals totally suck. An economy 70% dependent on consumer spending will always remain fucked until consumers stop getting poorer, period. Debt will never work again to inflate another fake balloon.

This Current Stock Bubble, (And despite of the rabid, foaming belief of the OP, THAT'S WHAT IT IS) is based on nothing more than Propaganda and artificial Manipulation of the Markets for the most part.

The Dow has become nothing more than a manipulated Casino.

There is almost NOTHING that has changed fundamentally in the Real Economy, which continues to get worse, and The Stock market has nothing to do at this point with being a Gage of a healthy economy. But the Cheerleaders like to flagellate all over the Manipulated Pig and scream "Recovery" when what is going on on Main Street is just a tad bit different than what is happening on Wall Street.

Oh but I KNOW, it's a fucking Jobless Recovery. Bernanke Monetizing the debt is GOOD for the Dollar, and Congress had no right to know where all the Bailout money went anyway, because it was to complex for them to understand, and so he was RIGHT to give them the finger.

The Disconnect about this issue continues to get worse, and worse.

But Wall Street will Continue to party at our expense, and The DU Cheerleaders, who are no more affluent than the CNBC Cheerleaders, will continue to gurgle and scream, and tell us it's good.

Just Ignore what's happening with the Dollar right now.

Just keep believing the Bank Profits are real, and Mark-To-Make-Believe Accounting has made it all better.

And I love it how the Artificial Runups happen so frequently now, but almost every time they do, the Futures Cliff Dive after the close. Yes, that's SUCH a healthy, normal Market.

Render unto me a fucking break.

But hey, it doesn't exist, The Recovery is here, The Recession is over, blah, blah, blah, blah.

Jobs are not needed.

Just the Magic Jawboning of Hopes, Assurances, and Propaganda.

Look, if ANY of this Wall Street BS had diddly squat to do with a REAL Recovery, Those of us who can see what is REALLY going on, that get accused by The Cheerleaders that "We Want The Economy To Fail" WOULD BE CHEERING RIGHT ALONG WITH IT. And that's what they don't seem to get.

We want a REAL Recovery.

With JOBS.

And REAL GROWTH.

And a REAL, FUNCTIONING SYSTEM that functions for ALL of We The People, not just Wall Street, The Monied Class, Goldman Sachs, and Corporate Entities feeding at the trough AT THE EXPENSE of the Rest Of Us.

BUBBLE. ECONOMICS. DOES. NOT. WORK.

What in the FUCK does it TAKE to GET people to realize that.

Quit Giggling, Snickering, Drooling, and FAWNING all over the Dow, and telling us all that the pile of Dog Shit on the ground is actually a bar of Godiva Chocolate.

Then, as now, the fundamental causes of the crash were not initially addressed. Then, as now, asset bubbles were mistaken for "economic growth" and the government and Federal Reserve were believed to have put out the fire.

In 1929, just as is the case now, those who warned about the collapse before it happened were repeatedly ignored and denied any voice in the policy debate, while those who actually caused the collapse were put in control of the recovery efforts.

Remind me how things turned out in 1930? Then tell me why this approach will serve Obama any better than it served Herbert Hoover?

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